11/17/2021 | Press release | Distributed by Public on 11/17/2021 07:40
Panama, November 17,2021.- IFC, a member of the World Bank Group, welcomed the Central American Council of Superintendents of Banks, Insurance and Other Financial Institutions (CCSBSO) as a new regional member of the Sustainable Banking and Finance Network (SBFN) that IFC coordinates. The CCSBSO is the third regional partner to join this Network in Latin America, together with the Association of Banking Supervisors of the Americas (ASBA) and the Latin American Federation of Banks (FELABAN), establishing a basis for promoting public-private partnerships and regional integration to advance sustainable finance in Central America, Colombia, and the Dominican Republic.
The main objective of the SBFN is to promote sustainable financing in the banking and non-banking sector, including capital markets, institutional investment, and insurance. As a member, the Central American Council will be an active part of this exchange of experiences, know-how and best practices among the more than 60 partners from 44 countries.
"Our mandate at IFC is to raise sustainability standards for financial institutions. So far, the Network has supported more than 30 countries in launching and implementing "regulatory policies, industry-led voluntary principles, technical guidelines, or roadmaps," said Marcela Ponce, IFC's Climate Finance Lead in Latin America.
Sanaa Abouzaid, IFC's manager for Central America, welcomed the CCSBSO and stressed that their membership is timely because "the region faces significant environmental, social and climate challenges, including the underdevelopment of its capital markets and needs to strengthen its supervisory and accountability systems."
IFC will collaborate with the CCSBSO member superintendencies in the development and implementation of national sustainable financing frameworks, the use of tools to finance environmentally friendly projects, the construction of environmental and social risk management systems aligned with international standards and the exchange of knowledge in the field.
"As a Council, we have a responsibility to promote among our members the application of the highest international standards related to the assessment and management of social and environmental risks for sustainable financing," said Mario Menéndez, President of the CCSBSO and Superintendent of the Financial System of El Salvador. "In addition, strengthening the technical capacities of personnel and our regulatory frameworks through knowledge of experiences and best practices implemented in other jurisdictions, will allow better management and supervision of these risks," he added.
Last August, the Central American Council signed a cooperation agreement with the IFC, the Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. (FMO) and the Norwegian Investment Fund for Developing Countries (Norfund), focused on facilitating the adoption of international standards and best practices related to social and environmental performance. The agreement consists of three components: 1) green finance taxonomy, 2) social, environmental and governance criteria, and 3) climate risks.
IFC-a member of the World Bank Group-is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. or more information, visit www.ifc.org.
About the Sustainable Banking and Finance Network(SBFN)
Establishing in 2012, the Sustainable Banking and Finance Network (SBFN) (formerly SBN) is a voluntary community of financial sector regulatory agencies and industry associations from emerging markets committed to advancing sustainable finance. The first global network of its kind focused on sustainable finance at market level, SBFN represents 44 countries and US$43 trillion (86 percent) of the total banking assets in emerging markets. SBFN members are committed to moving their financial sectors towards sustainability, with the twin goals of improved ESG risk management, including climate risks, and increased capital flows to activities with positive climate, environmental, and social impact. IFC is Secretariat and technical partner, assisting members to share knowledge and access capacity building that helps them design and implement national sustainable finance initiatives. For more information, visit https://www.sbfnetwork.org or read the latest Global Progress Report - Accelerating Sustainable Finance Together: Evidence of Policy Innovations and Market Actions across 43 Emerging Markets.
About the Central American Council of Superintendents of Banks, Insurance and Other Financial Institutions (CCSBSO)
The CCSBSO is an international non-profit association with an indefinite duration, composed of the institutions responsible for exercising banking, insurance and other financial activities of the Republics of Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Colombia, Panama, and the Dominican Republic. For more information, visit https://ccsbso.org/.